GRS 250. CONFH DENTILAL
FM UKMS GENEVA
TO IMMEDIATE FCO
TELNO 343
OF 241OO5Z JUNE 1986
CONFIDENTIAL
INFO IMMEDIATE PEKING, HONG KONG, NEW DELH, TOKYO
?
વા
4070408
413
YOUR TELNOS 598-9: HONG KONG AND GATT
1.
ALTHOUGH THE HINDHAN STATEMENT OF 17 JUNE WAS AN UNFORTUNATE
DEVELOPMENT, AM NOT CONVINCED THAT IT WOULD BE SOUND TACTICS TO ENCOURAGE THE CHINESE TO MAKE A FORMAL REBUTTAL IN GATT. THE INDIANS WOULD BE BOUND TO RESPOND, AND THIS MIGHT TRIGGER OTHERS TO JOIN »HN. THE LAST THING WE WANT HIS TO OPEN UP A GENERAL DEBATE ON HONG KONG'S FUTURE STATUS, HAVING SUCCESSFULLY ACHIEVED GENERAL ACQUIESCENCE IN THE CURRENT POSITION, FOLLOWING THE BRITISH DECLARATION UNDER ARTICLE XXV: 5(C).
2. INDIA'S DOUBTS, WHICH WE KNOW OTHERS E.G. JAPAN, YUGOSLAVHA AND. BRAZIL, SHARE, ALL REFER TO THE SITUATION AFTER 1997. CLEARLY MUCH WILL DEPEND UPON THE EVOLUTION OF CHINESE POLICY IN THE NEXT TEN
YEARS AND WHETHER OR NOT CHINA BECOMES A GATT CP. WE BELIEVE IT IS BEST TO TACKLE THESE PROBLEMS WHEN WE COME TO THEM: F CHINA HAS BECOME A MEMBER OF GATT, AND HONG KONG'S AUTONOMOUS STATUS HAS BEEN DEMONSTRATED BY E.G. AN ACTIVE ROLE IN THE NEW ROUND OF MULTILATERAL TRADE RELATIONS, THERE IS A GOOD CHANCE THAT THE DOUBTERS WILL BE SATISFIED.
3.
MY ADVICE THEREFORE S THAT WE SHOULD LET SLEEPING DOGS LHE. THUS, WE SHOULD DISCOURAGE THE CHINESE FROM MAKHING A FURTHER STATEMENT ON THE GROUNDS THAT, NOW THAT THE INDIANS HAVE FORMALLY RESERVED THEIR POSITION, WE ARE UNLIKELY TO HEAR ANY MORE. IF THERE HS A RASH OF FURTHER RESERVATIONS, WE SHALL NEED TO CONSIDER THE MATTER AGAIN. WHAT WE ARE SURE ABOUT IS THAT A FRESH CHINESE STATEMENT HIS MORE LIKELY TO PROVOKE THAN AVERT FURTHER RESERVATIONS.
4.
CARTLAND AGREES WITH THIS ASSESSMENT.
SANKEY
HKM 122/1
RECEIVED IN MUÈ
SY
24. JUN 1986
A. TRY
PA
Action Taken
QERK OFFIOOK
INDEX
HONG KONG AGREEMENT : RESTRICTED
LIMITED
HD/HKD
HD/FED
RESEARCH D (FE)
COPIES TO:
MR FIFOOT. LEGAL ADVISERS
DEP/HD PUSD
PS/MR RENTON
MR WILSON
SIR W.HARDING.
CONFIDENTIAL
THIS TELEGRAM
WAS NOT ADVANCED